The latest boost of 8.7 percent or about $140 a month for the average recipient, for 2023 is the highest since 1981.
Social Security Income: How Much Increase Should You Receive? (PHOTO: CNN)
The Highest COLA Increased In History
Social Security’s cost-of-living adjustment (COLA) for 2023 is the highest since 1981. The Social Security Administration (SSA) adapts benefit amounts every year to account for inflation through a cost-of-living adjustment (COLA). This benefit provides people with an income when they retire or can’t work due to disability. It was already announced that Social Security recipients already claimed their benefits worth $914 this 2023.
The funds allow the recipients to afford essential items and goods, including food and shelter for every day. Moreover, an online Message Center located in the personal section of my Social Security account will direct you and help you check your benefit amount.
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Here’s How COLA Is Calculated Annually
The COLA is calculated based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), an inflation meter calculated by the U.S. Bureau of Labor Statistics (BLS). It estimates the average change over time in the prices that workers are paying for in a “basket of consumer goods and services.” To determine the COLA, the SSA compares the average CPI-W for July, August, and September to the figure for that same period the year before.
lastly, The SSA clarifies on its website that the COLA is equal to the percentage gain in the CPI-W from the third quarter average of the previous year to the same average from the current year. If there is an increase, it’s rounded to the nearest tenth of a percent. That same increase is used for monthly Social Security payments.
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